President Arroyo’s economic managers Wednesday said the economy is expected to recover slightly in 2010, but warned against less efficient tax effort and unnecessary government spending that could swell the country’s fiscal deficit.

Budget Secretary Rolando Andaya Jr., Finance Secretary Margarito Teves, acting Socio-Economic Planning Secretary Augusto Santos and Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa Gunigundo gave an average forecast of 2.6 to 3.6 percent of the country’s gross domestic product (GDP) growth next year.

The members of the Development Budget Coordinating Committee (DBCC) presented their rather optimistic economic outlook before members of the House Committee on Appropriations that started the hearing on the proposed P1.541-trillion national budget for 2010.

They also solicited support for the record-high budget from the panel, chaired by Quirino Rep. Junie Cua. The hearing signaled the start of the so-called “budget season” in Congress.

Santos, secretary-general of the National Economic Development Authority (NEDA), said key indicators for the country’s economic growth are expected to increase next year as compared to the projected 0.8 to 1.8 percent growth for the entire 2009.

The NEDA chief said growth drivers in 2009 will push growth in 2010. These growth drivers include trade, tourism, construction sector, mining and quarrying, government service and transportation industry, he said.

However, Santos said economic growth would still “depend on timely and effective fiscal and monetary policy support from the private sector and the recovery of advanced economic and trading partners.”

Teves said the government’s chief collecting agencies – the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BoC) – must continue to strive harder to achieve next year’s revenue projection of P1.196 trillion. Of the amount, the BIR is tasked to collect P875.1 billion and the BOC is expected to generate some P309.5 billion.

The 2010 budget has a programmed deficit of P233.4 billion, while this year’s deficit is officially projected to reach P260 billion.

“Since we have this large deficit, the BIR and BoC will have to push a little harder in action plan to do our share in revenue generation,” Teves said.

He also urged Congress to consider the tax revenue measures proposed by the Executive Department like higher sin taxes and the imposition of excise tax on text messages.